Case studies

This case requires a decision on the possible consolidation of three Midwest business-travel centers. Significant cost savings in service representatives can be achieved by combining the front-end (booking) operations. The sensitivity of cost to service-productivity levels and customer waiting time is also explored. This case and related materials can be used as part of the Workforce Planning Module.

This case illustrates how two entrepreneurs bootstrapped their start-up, overcame the challenges that accompany growth, and built a successful business while remaining socially responsible.

With Method standing at number seven on Inc. magazine's list of the 500 fastest-growing companies in 2006, cofounder Adam Lowry is searching for a biodegradable cleaning cloth to expand Method's line of “green” household products. Sustainable design principles have been a guiding force in Method's strategy, and being biofriendly is critical. So is sourcing in the United States. But only China can manufacture the corn-based cloth Lowry has in mind, and there is no way to certify that the product is free of genetically modified organisms. Lowry has to balance his firm's fundamental commitment to environmental sustainability against the fact that some retailers refuse to carry products containing GMOs.

A credit-card company must value portfolios of customers based on their future earnings. The payment characteristics of customers serve to classify them into states. This case can be the basis for discussing state dynamics over time in a Markov process.

This case is used in Darden's first-year core operations class as part of a module on supply chain management. The Musictoday company provided online retailing services for such clients as the Dave Matthews Band and the Rolling Stones. But the lack of a formal inventory-management process had Musictoday concerned about future stockouts that would result in lost sales. This case covers the basics of safety stock within the context of a periodic review system. It introduces students to the periodic review system and provides them with an opportunity to link the optimal review period with the EOQ concept.

Our Daily Bread was a small boutique bakery producing a variety of daily and specialty breads. The company had excess capacity and was considering several options to increase revenues by entering the wholesale bread production business. The case allows students to perform process analysis in a multiproduct setting with seasonal demand and evaluate the impact on capacity, as well as the profitability of, potential wholesale orders. The case also enables analysis of the option to purchase new equipment. A teaching note and video supplement (OM-1018V) are available to registered faculty. The videos highlight the stages in bread making and provide a bird's-eye view of the entire operation. VIEW DEMO

This case examines the opportunity for the Quaker-Tropicana-Gatorade (QTG) division of PepsiCo to invest in either or both of two small but fast-growing retail channels: the Dollar Channel and the Natural Foods Channel. The case gives an overview of PepsiCo's business strategy, focusing on health, wellness, and diversity and also provides a wide range of information. Students are challenged to take a broad, general management view in developing their recommendations.

This corporate strategy case shows how PepsiCo stopped worrying about competing with Coca-Cola, figured out what its real business was, and decided how to build its future. Redefining itself as a beverage and snack business, PepsiCo sheds its restaurant business and acquires Quaker and Tropicana. By rethinking the synergistic relationship between the complementary, combined strengths of the merged companies, it strategizes to develop innovative products that will compete in a changing demographic, cultural, and geographical world. Will this strategy work in an increasingly competitive environment?

This case presents the “best practices” of a highly successful post-merger integrator that grew from $400 million in 1997, to $1.5 billion in 2000, to $4 billion in 2002. The case focus is on the $4.0 billion IT sector of Northrop Grumman, a company confronting immense change in the rapidly consolidating defense business. This integration is unique in that the product is a complete melding of various companies, systems, leaderships, and cultures of 11 legacy organizations. Not only is the result an organization with a new identity, but also one with new strategic capabilities unavailable to any of the stand-alone legacy companies. A teaching note is available to registered faculty, along with video clips that include footage of weapons systems (e.g., B-2 bomber) and information about the company's PMI process.

This case exposes students to predictive analytics as applied to discrete events with logistic regression. The VP of customer services for a successful start-up wants to proactively identify customers most likely to cancel services or “churn.” He assigns the task to one of his associates and provides him with data on customer behavior and his intuition about what drives churn. The associate must generate a list of the customers most likely to churn and the top three reasons for that likelihood.